All About Against The Top Down Approach To Picking Stocks
If you’ve heard fund bosses talk about the way that they invest, you know many employ a top down approach. First, they decide what proportion of their portfolio to allot to stocks and how much to allot to bonds. At that point, they might also decide on the relative mixture of foreign and domestic stocks. Next, they decide on the industries to make an investment in. It isn’t till all of these calls have been made that they get down to investigating any special instruments. If you suspect rationally about this approach for but a moment, you’ll recognise how actually stupid it is.